NSDL has released File Validation Utility Version 3.4 and it is mandatory w.e.f March 2012. This utility is to be used for making corrections in statement pertaining to FY 2010-11 and onwards. For correction statements pertaining to period upto FY 2009-10 , FVU 2.132 has to be used
To implement above fvu, fast facts has released eTdsCorrection Version 2.97.
Date of Deduction beyond current quarter
The only change in this fvu is about date of deduction
Previously, the date of deduction could not be beyond end of date of the quarter. So if eTDS file pertains to Q1 of 2011-12, the date of deduction could not be beyond 30-06-2-11.
Now it is possible to quote date beyond quarter ending date.
However the date of deduction cannot be future date.
Reason for this change
Section 40(a)(ia) of the Income Tax Act, provides for non-admissibility of certain expenses in computation of total income, if tax is not deducted at source before due date of filing of income-tax return.
This means that tax can be deducted after the end of quarter but before the due date of filing of income-tax return.
While this was being allowed by the law, the fvu was treating this as invalid deduction entry and was not allowing creation of fvu file.
With fvu 3.4 and 2.132 this anomaly has been removed.
NSDL has released File Validation Utility Version 3.3 and it is mandatory w.e.f Feb 1, 2012. This utility is to be used for making corrections in statement pertaining to FY 2010-11 and onwards. For correction statements pertaining to period upto FY 2009-10 , FVU 2.131 has to be used
To implement above fvu, fast facts has released eTdsCorrection Version 2.96.
Encryption of fvu file
Most important change in this version is generation of encrypted fvu file. While earlier fvu file was being generated in plain text , the encrypted file is converted thru a secret code and will not be readable.
The consolidated fvu file to be used for correction must be in the same path as eTDSCorrection exe file. If you select a file from a different folder, you will get the following message
File in a different folder or in a sub folder cannot be considered
One new field in correction statement is Hash Value , which will be picked from consolidated fvu file.
Deductee records with Flag “C”
- Deductee records with flag “C” indicate deduction at penal rate of 20% in case of deductees not having valid PAN.
- Several deductors filed regular eTDS Statement containing valid PANs and Flag “C”. FVU 3.2 does not allow editing of deductee records with flag “C”
- FVU 3.3 will now allow editing of such records for all fields except the flag “C”
- Change applicable for FY 2010-11 onwards.
Data structure for consolidated FVU file has been amended by NSDL to provide for some additional validations. Read
eTDS Correction version 2.95 has been released to incorporate the above changes.
Download updated consolidated fvu
If you had earlier downloaded consolidated fvu file and are trying to use eTDS Correction version 2.95, you will be prompted to request for updated consolidated file and will not be allowed to proceed.
Please note that if you have carried out some updates in a consolidated fvu file using a prior version of eTDS Correction 2.94 , you will have to re-set and carry out the changes all over again
Before proceeding, eTDS Correction will show you a count of structurally valid PANs which are missing in Income-tax database and will give you an excel sheet containing party name and PAN.
You must get the correct PAN and rectify the same. If you fail to do so, you will get a default notice for short deduction as such entries will be considered for penal rate of 20% by income-tax processing software.
If you are trying to modify a valid PAN, software will check if it has been already amended. Modification of valid PAN is allowed only once. If it has been earlier modified, no change will be permitted by the software.
Pending Balance Amount
Consolidated fvu file now contains pending balance amount against a matached challan. Hence even if you have allocated challan amount to deductees across two or more quarters, the pending balance amount will be available to the software and any new allocation will not be allowed to exceed pending balance amount
Hence with the use of version 2.95, the chances of your eTDS correction statement getting rejected at TIN will be further minimised
As directed by DIT (Systems), deductor/ collector are advised to prepare correction TDS/TCS statements using consolidated TDS/TCS file only, provided by TIN.
Consolidated TDS/TCS file is provided to registered TANs.
How to download consolidated FVU can be understood from our blog http://blog.ffcs.in/2010/09/10/now-get-consolidated-etds-file-from-nsdl/
In view of the above directive , eTDS Correction Version 2.90 has been released
- This version will take only consolidated fvu file with extension .tds for making corrections.
- Another change is in Challan Modification. Now even if challan status is Matched – Section Code can be modified
It is also informed that update of section code in quarterly TDS/TCS statement is allowed in case status of the challan/ transfer voucher is booked/ provisionally booked.
We always knew it but now it is official ! NSDL has recently published the “Software vendorwise percentage of correction TDS/TCS statements accepted and rejected at TIN central system for the period October 1, 2009 to December 31, 2010”
The table shows that eTDS Correction utility from Fast Facts has
- Acceptance Percentage : 84%
- Rejection Percentage : 16%
To view the complete table , please click on the following link http://www.tin-nsdl.com/Software-vendor-stats.asp
We feel that is due to twin factors
- Quality control in software and timely upgrades
- Continueus user training and updates thru our bulletin and blogs
We thank all our clients for making us most reliable eTDS Correction software and hope to get your continued support
In the TDS notices which are being sent by the I.T.Dept. the amounts appearing in the Short Deduction column is mainly on account of lower TDS transactions tax deducted at lower than the prescribed rate because of lower rate certificate obtained by the deductee from the ITO (TDS) ) not being marked as A in the reason for lower TDS column in the eTDS Return.
Prior to eTdsCorrection Version 2.83
Preparing a correction return for flagging all such lower TDS rate transactions takes time as each transaction in each challan has to be individually corrected.
New Feature in Version 2.83
- A new command button is provided in the FVU Selection screen “Reasons for Deduction”
- On clicking this button , a new screen showing all deductee names and PAN in the left panel appears
- Clicking on any deductee will display all the deductions for that deductee in the right panel
- The existing Reason for lower / nil deduction is shown and correction can be entered in the next column
- Pressing F3 will repeat the values in all rows
eTDS Correction Version 2.80
Income tax department has taken proactive steps to ensure that rejections in eTDS correction statements are reduced over a period of time. While several reasons for rejections are beyond the control of software, Fast Facts has identified areas which can be strengthened to minimize chances of rejections.
When both original and consolidated FVU files are present
It is always preferable to download consolidated FVU file from NSDL web site before doing corrections. There might be cases where both original and consolidated files are present in the folder. In such case, software will given the following message .
For this statement both original FVU & consolidated FVU files are present. Please be careful in file selection.
However ,this will be only warning and selection of file will be depending on what user selects. If user ticks “Consolidated FVU file” then consolidated fvu will be selected, else original fvu will be selected
When consolidated file is downloaded several times
There might be cases where consolidated file is downloaded 2 or more times for the same form/quarter. In such case software will identify difference and give following warning message
An earlier version of consolidated FVU file for this period is already available. It is understood that you have downloaded a newer version of the file. Data in the newer version will be considered for correction and data in the older version will be ignored.”
Partial Completion of correction/ Complete correction
Many a times, corrections are in large numbers and user has to carry it over several days. In such case, software preserves the corrections carried out in the past. However completion of work and creation of correction statement is not marked. Now the following messages will be shown
If eTDS Correction is not created
“You carried out corrections in this FVU on <<CorrectionsMadeDate>> value. It is understood that you are continuing the corrections
If eTDS correction is created
“You had created correction statement for this FVU on <<FileCreatedDate>> value”. For doing any further corrections you have to download consolidated FVU file from NSDL website. If you continue corrections in this file, your correction statement maybe rejected. Continue any way “